The omnibus Regulatory Reform Bill (referred to above) includes proposed amendments to the Takeovers Act 1993 to:
- clarify that the Takeovers Code applies to matters that start out under the Code, until the transaction or event has been completed;
- amend the 'code company' definition in the Takeovers Act and the Takeovers Code so that a code company must, as well as having '50 or more shareholder's', have 50 or more share parcels; and
- clarify that the '50 or more shareholders' requirement includes only shareholders holding securities that confer voting rights.
The Bill introduces two further amendments to the Takeovers Act to facilitate more efficient and quicker decision making on the part of the Takeovers Panel by:
- enabling divisions of the Panel to make decisions by way of written resolution signed by all members of the division; and
- allowing the Panel to take into consideration "international comity between New Zealand and any other country" when it reviews exemption applications involving foreign upstream transactions.
For further details on these proposed amendments see our earlier client update on the Regulatory Reform Bill: Electronic shareholder communications and electronic voting included in new bill
The Bill is currently before the Commerce Select Committee which has called for submissions on the Bill. Submissions close on 1 April 2011.